HOTELS & HOSPITALITY

New Jersey’s (USA) to review ‘fair franchising legislation” which may ban hotels selling loyalty points at a profit.

New Jersey’s State Assembly Bill on ‘fair franchising legislation’ (bill A1958 before the Assembly Commerce and Economic Development Committee, and state Senate S3165) might ban hotels selling points to the customers at a profit.

GLO

The draft pfroposed bill to be debated by New Jersey State Assmbly includes: 

“…

(2)   a franchisor’s services in resolving guest complaints to the franchisor about a franchisee, except that a refund provided by the franchisor to a complaining guest may be charged back to the franchisee;

1. Sell points or credits in a hospitality franchisor’s loyalty program to a guest for the purpose of permitting the guest to redeem points for a specific stay at a specific franchisee’s facility without compensating the franchisee for the stay at no less than the franchisee’s lowest publicly advertised rate for that stay or the value of the points sold, whichever is less; … ” 

Detailed analysis of the possible impact at View from the Wing.